A major advantage of the target costing approach to pricing is that target costing

A major advantage of the target costing approach to pricing is that target costing:
1 allows a company to analyze the potential profit of a product before spending money to produce the product.
2 is not dependent on customers’ quality versus price decisions.
3 identifies unproductive assets.
4 anticipates the product’s profitability midway through its life cycle.
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